Question: pints You are comparing two possible capital structures for a firm. The first option is an all-equity firm. The second option involves the use of

 pints You are comparing two possible capital structures for a firm.

pints You are comparing two possible capital structures for a firm. The first option is an all-equity firm. The second option involves the use of 538 miliondet. The respons between these two financing options occurs when the earnings before interest and taxes EBIT) are 5428,000. Given this you know that cannot be botherm I only if the debt is decreased by $428,000 ll only if the debt is increased by $428,000 O I. whenever EBIT exceeds $428,000 I only when EBIT is $420,000 V. whenever EBIT is less than 5428,000

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